I agree that credit is what drives the market. There’s still plenty of easy financing out there. If a buyer wants a loan, he can. We have to keep in mind that buyers intend on buying a house, will go to lengths than us, Piggingtons, won’t even consider.
Just to get a feel of psychology, I just talked to my brother who doesn’t follow the market as closely as I do. He said that “really nice” houses aren’t going down and maybe he should buy now. I told him absolutely not! But he’s got a wife and a 3-year old child and they are feeling cramped in their townhouse.
Zillow also makes people believe that houses are “worth” more than they are.
The real bleeding won’t happen until psychology turns decidedly negative.
